EBET to terminate entire esports venture
EBET Inc (formerly Esports Technologies) is preparing to terminate its esports venture amid reports that it has failed to gain traction in the esports wagering market.
The news was reported by the Sharpr substack of esports business journalist Cody Luongo and contributor James Fudge, who cited ‘multiple sources familiar with the situation.’
Sharpr claims that EBET has let go several esports employees, as the company prepares to shift focus toward developing its revenue-generating igaming properties.
Last May, EBET disclosed that it had absorbed a $38m impairment charge in relation to its ‘unmonetized esports assets’ of Helix, ggCircuit and EGL – assets that had been acquired in 2020 following Esports Technologies listing on the Global Nasdaq.
The impairment charge saw EBET forced to fend-off liquidity concerns, as the operator declared a Q2 operating loss of $50m, whilst its cash reserve fell to below $10m.
The majority of EBET’s $19m were generated by its online casino brands of Karamba, Hopa, Griffon Casino and Dansk777 – the former white label portfolio of Aspire Global acquired by EBET In Q4 of last year.
In June, EBET announced that it had closed a private placement of 977,000 common shares at price of £3.58, seeking to raise gross proceeds of $3.5m for ‘general corporate purposes’.
Further Sharpr revelations revealed that EBET had chosen to part ways with strategic esports advisors XSET co-founder, music producer, and hip-hop artist Clinton Sparks; and Atari and Chuck E. Cheese Founder Nolan Bushnell.
Founded in 2020 by Las Vegas entrepreneur Aaron Speech, Esports Technologies aimed to establish a portfolio of new esports and igaming brands that would engage with Millennial and Gen-Z sports audiences and deliver new ‘cross-over’ innovations to market.
In May, Esports Technologies rebranded to EBET Inc to ‘reflect its multi-product vision and target demographic’.
The Sharpr report noted that EBET’s reorganisation represented wider esports investment concerns, in which esports ventures have seen investment reduced as amid fears of a global market slowdown and consequent tech investment sell-off.